be introduced. Proposals in the document on which there was less of a public consensus including proposals for a system of Police supervision of certain offenders and the placing of limits on activities of convicted triad members- will be further considered by the Hong Kong Government, in the light of the public comments received, before amendments are made to the law.

CONCLUSION

82. 1986 has been a year of further steady progress for Hong Kong. The economy, led by a strong export performance, is flourishing. Unemployment and inflation have remained low and there has been a return to a balanced budget. Investor confidence, both local and overseas, remains good, partic- ularly in the manufacturing industry. The Sino-British Joint Liaison Group and the Land Commission have worked steadily and productively and have considerable practical achievements to their credit. Steps towards more repre- sentative government taken in 1985 have been consolidated during 1986. 1987 will be an important year in which further steps in the process of Hong Kong's political development will be considered by the people of Hong Kong.

83. Her Majesty's Government remain firmly committed to the territory of Hong Kong and its people. They will continue to fulfil their responsibilities for Hong Kong's sound administration and to look after Hong Kong's interests internationally. They will work to ensure the smooth implementation of the Sino-British Joint Declaration, to maintain confidence and to preserve eco- nomic prosperity and social stability.

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